Circular Prequalification and Bidding Practices at Contractor Firms

Developing new prequalification and bidding practices are paramount to the implementation of circular building and refurbishment. Understanding these practices are essential as prequalification and bidding represent the two most important competitive parameters for contractor firms. However, little is known about the actual prequalification practices and bidding practices at contractor firms due to the sensitivity and confidentiality of the subject. The purpose of this paper is to investigate through activity theory how practices of prequalification and bidding in contractor firms may support or hinder a circular transformation of refurbishment and new building. It is based on an integrative literature review that will review, critically appraise, and synthesise representative literature in an integrated way to generate new frameworks and perspectives on the research question. The study points at the barriers and levers for a circular transition of contractor firms. The main findings are related to five central dilemmas that contractor firms are facing in the process towards circular prequalification and bidding practices identified from the activity system. The five dilemmas include: 1) scalability within the organisation and knowledge sharing, 2) interpretation of sustainable requirements, 3) narrow profit margin and poor business cases, 4) underdeveloped circular markets and 5) the traditional practices of tendering. In conclusion, this paper will generate new insights on prequalification and bidding practices for both researchers and practitioners into the possibilities and obstacles for renewing the building industry and transforming it towards a circular future.